Scotland's economy was growing at around a third of the rate recorded for the UK as a whole in the period July to September 2016, new official figures show.

The new figures show GDP rose by 0.2% in Scotland in the period July to September 2016, compared with growth of 0.6% recorded for the UK as a whole.

Figures for the 12-months to September show Scottish GDP rose by 0.7 per cent compared with a 2.2 per cent increase for the UK as a whole over the same period.

Growth in Scotland was led by the service sector, which was up 0.4 per cent, helped by 0.8 per cent growth in finance and business services.

However construction was down 1.4 per cent in the period and the production sector was down 0.1 per cent.

Political economist John McLaren described the latest Scottish GDP figures as “grim”.

“Not only was quarter-three bad but quarter-two has also been revised down,” he said.

“This continues the longer term sluggish performance of the Scottish economy over the last three years relative to the UK.”

Cabinet Secretary for economy, Keith Brown, said: “These figures show continued overall economic growth for Scotland’s economy in the months following the EU referendum vote, with the service sector leading the way.

“Output in the construction sector is still 13 per cent higher than it was in Q3 2014, leaving us in a relatively strong position and the Scottish Government has set out a programme of investment in infrastructure, including fast-tracking £100 million of public spending to continue to support the sector.”

He added: “There is no doubt that businesses have faced increased economic uncertainty in the months following the EU referendum result, and Scotland is not immune to these risks.”

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Liz Cameron, chief executive of Scottish Chambers of Commerce, urged ministers to help Scottish businesses become more competitive.

She said: “As the Scottish Parliament prepares to debate the Scottish Government’s Draft Budget for the year ahead, we would ask our politicians to consider carefully whether each measure proposed will make it easier for businesses to succeed, or make it more difficult.”

Andy Willox, Scottish policy convenor of the Federation of Small Businesses, said the “mediocre economic statistics are unwelcome if not surprising”.

He added: “2017 must be the year when we get Scotland’s economy moving again.

“New and growing firms can help to deliver this gear shift.

“We’re looking for governments in Edinburgh and London to think about the impact on local economies of every decision they make.

“When Scottish firms are reassured that their interests are at the top of the agenda, we’re sure that they’ll help to deliver the jobs and growth the country needs.”

Professor Graeme Roy, director of the Fraser of Allander Institute at the University of Strathclyde, said the latest Scottish GDP figures were “clearly disappointing” and a “continuation of a worrying trend of the Scottish economy lagging behind the rest of the UK”.

He said: “Growth of just 0.2 per cent in Q3 of 2016 is just one third of that of the UK as a whole.

“Moreover, the Scottish estimate for quarter two – which at the time we noted was surprisingly strong – has also been revised down.

“This means that Scottish growth over the year now stands at just 0.7 per cent compared to 2.2% for the UK as a whole.

“Manufacturing remains especially weak with a decline of over 5.0 per cent over the last 12 months.

“Coupled with a sharp fall in the number of people in employment over the year to November (down 49,000 for those aged 16-64), this emphasises just how poor Scotland’s recent economic performance has been.

“While some may try to infer something about the economic consequences of the Brexit vote from today’s news, we would urge caution.

“While these are the first data we have about the overall performance of the Scottish economy since the vote on June 23rd, Scotland’s economic challenges and underperformance predate that vote.”